Required information [The following information applies to the questions displayed below.] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Cash Inventory Debit $16,000 8,000 Credit Common Stock Retained Earnings Total $ 24,000 $ 20,000 4,000 $ 24,000 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $15,000. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash. 3. Returned $2,600 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $1,100 allowance. 5. Sold merchandise that cost $15,000 for $31,000 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cash. 7. Paid $8,000 on the merchandise purchased in Event 1. 8. Paid $9,000 cash for operating expenses. View transaction list Journal entry worksheet CD E F Record entry for purchase of merchandise on account. Note: Enter debits before credits Event 01 General Journal Debil Credit Record entry Clear entry View general journal < Prev 3 4 5 6 of 8 Next > b. Open general ledger T-accounts with the appropriate beginning balances, and pc Cash Beg. Bal End. Bal Accounts Payable Beg. Bal End. Bal Inventory Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Sales Revenue Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal Required information End. Bal End. Bal Retained Earnings Sales Revenue Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal End. Bal ces Beg. Bal End. Bal Operating Expenses End. Bal Income Statement Balance Sheet Statement of Cash Flows Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Book int int ences Income Statement Statement of Balance Sheet Cash Flows Prepare a balance sheet TERRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Pre Statement Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been m minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance < Balance Sheet Statement